Gulf Capital acquires controlling stake in Accumed

Gulf Capital, an alternative asset management company, acquired a controlling stake in healthcare sector-focused technology firm, Accumed Practice Management. With about Dh15 billion in assets under management, the company is building its portfolio of investments across the region.

The transaction is Gulf Capital’s fourth acquisition in the technology sector, it said in a statement yesterday, without specifying the size of the stake or the financial details of the deal. Accumed, post-acquisition, will retain the current management and expand the team further to strengthen its operations, it said.

“This strategic investment in Accumed is an exciting one for Gulf Capital, as it offers our investors exposure to the fast-growing healthcare industry in the GCC, but without the capital intensity or regulatory risks usually associated with investments in the industry,” said Karim El Solh, the chief executive of Gulf Capital.

“We look forward to funding and supporting the growth of the company, so it can continue to deliver enhanced operational and financial performance improvements to healthcare providers in the GCC.”

Investment houses and private equity companies are increasingly looking to invest in the region’s healthcare sector and associated businesses as the health services infrastructure expands. Technology companies servicing banking, finance and healthcare sectors have also been on investors’ radar as demand for digitisation grows rapidly.

Gulf Capital has invested more than Dh500 million to date in the regional technology sector. It focuses primarily on late-stage control buyouts, growth capital, real estate development and private debt business across 10 funds and investment vehicles.

Accumed offers proprietary technology and processes to help public and private healthcare providers in the UAE, Saudi Arabia and Kuwait to improve medical documentation, billing cycles, optimise revenues and accelerate collections.

The firm is among the top operators, in the Middle East, and has so far managed more than nine million medical claims worth over Dh4.1bn. The scope of services also includes business process outsourcing, technology solutions and covering all medical insurance billing needs for hospitals, clinics, diagnostic centres and other healthcare providers.

Gulf Capital stands to benefit from the growth in the healthcare sector in the Middle East, as penetration of health insurance widens across the region and regulations governing the sector mature.

Ernst & Young was the financial and tax adviser on the Accumed deal while Alvarez and Marsal and Eversheds Sutherland acted as the commercial and legal advisers respectively.